A recent GSV Capital Corp (NASDAQ:GSVC) presentation highlighted the recent push towards historically large IPOs. In fact, the company raised capital as a way to provide investors in the stock market with an opportunity to invest in small cap companies no longer going public. As an example, GSV owns stock in Twitter that was recently valued with a market value of around $9B.
This IPO is a refreshing change where a stock is going public before the large growth period has already occurred. Lately, similar growth stocks have obtained capital in the private markets via private equity firms or a company like GSV.
With the recent all-time highs of the 3D printing stocks, ExOne is sure to shine. If the company can expand on the Q4 numbers, the stock offers a very attractive price to investors that can obtain the IPO prices. Unfortunately, the stock is likely to price at higher levels. For investors though, a $300M stock going to $3B is more likely than a $3B stock going to $30B.
It isn’t apparent that the eventual IPO pricing will be more attractive to investors over buying a GSV Capital trading substantially below NAV, but it is very refreshing to see a company going public at a size prior to the major growth phase. Small investors may not get an attractive price, but they will eventually win if the small companies return to the public markets.
The article A 3D Printing IPO from the Past originally appeared on Fool.com and is written by Mark Holder.
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